Litigation funding and expenses Market Size, Share, Growth, and Industry Analysis, By Type (Commercial and Class action), By Application (Law and Corporations), and Regional Forecast to 2033

LITIGATION FUNDING AND EXPENSES MARKET OVERVIEW

The Global litigation funding and expenses market size was USD 961.89 million in 2024 and the market is projected to touch USD 1386.94 million by 2033, exhibiting a CAGR of 4.1% during the forecast period.

Litigation funding, also known as third-party litigation financing, is the practice of providing financial resources to plaintiffs or law firms by a third party in exchange for a share of the proceeds recovered from the lawsuit. This market has experienced significant growth in recent years because it can provide access to justice for individuals and entities that may not have the financial means to pursue legal action. Growing complexity in legal disputes, particularly in commercial litigation, intellectual property rights, class action lawsuits, and others, are rising causes of the growing market for litigation funding and expenses.

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KEY FINDINGS

• Market Size and Growth: The Cash and Treasury Management Software Market size was USD 391.71 Million in 2024, is projected to grow to USD 407.00 Million by 2025 and exceed USD 555.65 Million by 2033, with a CAGR of 3.9%.

• Key Market Driver: Increasing need for real-time cash visibility and liquidity management, with more than 60% of multinational companies now operating multiple bank accounts that require centralized monitoring.

• Major Market Restraint: Complex integration with legacy ERP and banking systems, with around 35% of implementation projects facing delays due to customization and harmonization issues.

• Emerging Trends: AI-based forecasting and anomaly detection tools are becoming standard features, while over 45% of new deployments are shifting toward cloud-native platforms.

• Regional Leadership: North America dominates adoption, accounting for more than 40% of deployments, supported by advanced financial infrastructures and strong digital transformation initiatives.

• Competitive Landscape: Between 8 and 10 major players lead the competitive landscape, focusing on embedded APIs, global bank connectivity, and cloud-first treasury platforms.

• Market Segmentation: By module: cash forecasting, bank account management, reconciliation, and liquidity optimization. Among these, cash forecasting is the most widely adopted, driven by enterprises’ focus on short-term planning accuracy.

• Recent Development: In 2025, FIS Global launched its Quantum Cloud Edition to boost scalability, while Embat partnered with MacroFin to streamline treasury operations across multi-entity organizations.

COVID-19 IMPACT

"Litigation funding and expenses Industry Had a Negative Effect Due to slowdown in case filing during COVID-19 Pandemic"

The COVID-19 pandemic had a telling impact on the Litigation Funding And Expenses Market. In its early stages, courts and legal procedures were either in limbo or postponed, resulting in a slowdown in new case filing. Litigation funders capitalized on this opportunity by providing necessary financial support to claimants facing economic hardships due to the pandemic. 

LATEST TREND

"Growing shift towards portfolio funding to Drive Market Growth"

The litigation funding market is characterized by several emerging trends. There is a growing shift towards portfolio funding, where funders provide financing for multiple cases rather than a single one, thereby diversifying risk. Additionally, the integration of advanced analytics and artificial intelligence is playing a pivotal role in evaluating the merits of cases and determining their potential outcomes. A new trend is the growth of ESG focused litigation funding because litigation more founders are indeed committing their support towards the cause for ethical and sustainable practices.

LITIGATION FUNDING AND EXPENSES MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Commercial and Class action

Conditional Fee Agreements (CFAs): Conditional Fee Agreements allow lawyers to charge fees based on case outcomes. This model is widely used as it reduces upfront costs for clients, while incentivizing legal representatives to achieve favorable settlements. CFAs create financial security for individuals and businesses involved in legal disputes by balancing risks and potential rewards, thereby driving adoption across multiple regions.

The Conditional Fee Agreements market size is expected to grow significantly within the forecast period, representing a major share of the overall market, with a consistent CAGR aligning with global litigation financing demand between 2025 and 2033.

Top 5 Major Dominant Countries in the Conditional Fee Agreements Segment

• The United States dominates CFAs with high adoption across corporate litigation, recording a substantial market share and steady CAGR driven by an advanced legal system and supportive regulatory frameworks.
• The United Kingdom holds a prominent role in CFA growth, contributing a significant portion of market size, fueled by its established legal funding ecosystem and increased law firm participation.
• Canada’s CFA segment is expanding steadily, capturing a healthy market share with a CAGR driven by corporate and insurance litigation cases under supportive financing mechanisms.
• Australia represents one of the fastest-growing CFA markets, showing robust CAGR figures supported by consumer litigation and rising demand for flexible case financing options.
• Germany is a leading CFA adopter in Europe, holding a considerable market share with stable CAGR growth supported by expanding cross-border commercial dispute settlements.

Damages-Based Agreements (DBAs): Damages-Based Agreements are contingency arrangements where lawyers receive a percentage of damages awarded if a case is successful. This approach has gained momentum as it reduces financial burdens on litigants, particularly in commercial and class action cases. DBAs offer attractive incentives for law firms and clients, especially in regions with supportive regulatory structures.

The DBAs segment contributes a noticeable portion of the market, with its growth driven by commercial litigation demand and strong CAGR expected across Europe and North America.

Top 5 Major Dominant Countries in the Damages-Based Agreements Segment

• The United Kingdom leads DBAs with strong market share and significant CAGR, supported by the maturity of contingency fee models across corporate litigation and class actions.
• The United States follows with rising adoption of DBAs in complex litigations, maintaining steady market share growth across multiple jurisdictions and sectors.
• Canada’s DBA market is steadily growing, capturing a considerable share with litigation financing support from regional firms and favorable legal structures.
• Germany records increasing use of DBAs in commercial disputes, showing stable CAGR and expanding market share in Europe’s litigation landscape.
• Australia demonstrates strong growth in DBAs with rising adoption in mass tort litigation and consumer-related disputes, fueling CAGR growth.

By Application

Based on application, the global market can be categorized into Law and Corporations

Law: The Law application segment includes individual litigants, law firms, and collective actions requiring financial support. This segment ensures access to justice while minimizing financial burdens, contributing significantly to overall market adoption globally.

The Law segment represents the largest market share with substantial growth projected and consistent CAGR during the forecast period.

Top 5 Major Dominant Countries in the Law Application Segment

• The United States dominates the Law application, recording the largest market share with steady CAGR due to advanced litigation funding infrastructure.
• The United Kingdom contributes significantly to the Law application, maintaining healthy market size and CAGR supported by its robust legal sector.
• Germany holds a strong position in Europe’s Law application, with consistent CAGR fueled by corporate litigation.
• Canada shows stable growth in the Law segment with rising demand across civil and commercial disputes.
• Australia continues to expand its Law segment, posting strong CAGR due to increasing adoption of litigation financing models.

• Corporations: Companies are increasingly using litigation funding to manage legal expenses without affecting their operational budgets. This is relevant for corporations that are involved in high-value disputes or want to monetize their legal claims.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Increasing applications to Boost the Market"

The key drivers of the litigation funding market are the skyrocketing expenses related to litigations, which is also prohibitive in nature for individuals and smaller companies. The increasing complexity of legal disputes, particularly in sectors like technology, pharmaceuticals, and financial services, is also contributing to the demand for litigation funding. Additionally, legislative reforms in regions such as the United Kingdom and Australia that support transparency and regulation in litigation funding are encouraging more parties to explore this option and hence drive the Litigation Funding And Expenses Market growth.

Restraining Factor

"Ethical concerns to Potentially Impede Market Growth"

Despite its growth, the litigation funding market faces several restraining factors. One of the key challenges is the perception of ethical concerns, as critics argue that third-party funding could potentially influence the course of litigation. Another significant barrier lies in regulatory uncertainty in certain regions. The lack of harmonized frameworks results in difficulties with funders trying to operate across multiple jurisdictions. The high risk attached to funding cases that may not reap fruits at the end also discourages new entrants into the market.

Opportunity

"Emerging economies To Create Opportunity for the Product in the Market"

The litigation funding industry attracts wide opportunities, especially in emerging markets, as the concept is still developing here. Litigation funding is gradually making inroads into Asian countries such as India and China hence, there are huge growth opportunities for the companies in the industry. Another source of growth comes from diversification into new areas like international arbitration and insolvency cases. Opportunities also come through attracting more co-operation between the funders and law firms into innovative funding modes that could meet the diverse needs of all clients.

Challenge

"Diligence processes Could Be a Potential Challenge for Consumers"

The market is also not without its difficulties, including significant competition between litigation funders that can potentially lower returns. The need for strong due diligence processes is also a challenge to ensure cases selected for funding have a good chance of success. Maintaining transparency and managing relationships with claimants and their legal teams, avoiding conflicts of interest is also a challenge. As the market continues to grow, so will the necessity for clear and consistent regulatory standards.

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LITIGATION FUNDING AND EXPENSES MARKET REGIONAL INSIGHTS

North America

North America remains the largest regional market, driven by a mature legal ecosystem, high frequency of class actions and commercial disputes, extensive use of third-party financing and insurance products, and growing acceptance among corporations and law firms of external funding solutions.

The North America market was estimated at approximately USD 404.0 million in 2024, capturing about 42.0% share of the global market and expected to expand at a CAGR of 4.2% over the 2025–2033 forecast period.

North America - Major Dominant Countries in the Litigation Funding and Expenses Market Market

• United States recorded roughly USD 320.0 million in 2024, representing about 33.3% of the global market and growing at an expected CAGR of 4.3% due to robust corporate litigation, class actions, and wide third-party funding adoption.
• Canada posted near USD 40.0 million in 2024, holding around 4.2% global share and projected to grow at a CAGR of 4.1% supported by rising class actions and increasing law firm use of financing solutions.
• Mexico reached about USD 22.0 million in 2024, capturing 2.3% share and forecast to grow at a 3.8% CAGR as litigation finance awareness spreads among corporate and civil claims.
• The Bahamas accounted for roughly USD 12.0 million in 2024, with a 1.2% share and a projected CAGR of 3.9% driven by international commercial dispute work and offshore dispute resolution demand.
• Cayman Islands recorded about USD 10.0 million in 2024, representing about 1.0% share and expected to expand at a CAGR of 3.7% led by arbitration funding and cross-border commercial cases.

Europe

Europe represents a well-established market for litigation finance, with diverse regulatory frameworks, strong class action activity in certain jurisdictions, and growing use of third-party funding and after-the-event insurance, particularly for cross-border commercial disputes and investor-state claims.

Europe’s market size was approximately USD 289.0 million in 2024, accounting for about 30.0% of the global total and anticipated to grow at a CAGR of 4.0% from 2025 through 2033.

Europe - Major Dominant Countries in the Litigation Funding and Expenses Market Market

• United Kingdom posted around USD 125.0 million in 2024, holding 13.0% global share and projected to expand at 4.2% CAGR driven by established funding markets and active commercial litigation.
• Germany contributed about USD 48.0 million in 2024, representing 5.0% share and expected to grow at a 3.9% CAGR supported by corporate dispute resolution demand.
• France recorded near USD 36.0 million in 2024, with a 3.7% share and forecast CAGR of 3.8% as class actions and collective redress mechanisms slowly evolve.
• Netherlands reached about USD 30.0 million in 2024, holding 3.1% share and expected CAGR of 4.1% supported by arbitration and commercial case financing.
• Switzerland accounted for approximately USD 20.0 million in 2024, roughly 2.1% share and a projected CAGR of 3.7% due to its role in international arbitration funding.

Asia

Asia’s litigation funding market is emerging quickly as legal ecosystems mature, cross-border investment disputes increase, and awareness of financing options grows; regional variations are significant, with developed markets leading adoption while others are at early stages of regulatory evolution.

The Asia market size was estimated at around USD 173.0 million in 2024, representing roughly 18.0% of the global market and forecast to expand at a CAGR of 4.4% during 2025–2033 as adoption broadens across corporate and investor-related disputes.

Asia - Major Dominant Countries in the Litigation Funding and Expenses Market Market

• China recorded approximately USD 45.0 million in 2024, holding about 4.7% global share and projected CAGR of 4.6% as commercial dispute resolution and arbitration funding gain traction.
• Japan posted near USD 42.0 million in 2024, representing 4.4% share and expected to grow at 4.3% CAGR driven by corporate litigation and cross-border cases.
• India reached about USD 30.0 million in 2024, with a 3.1% share and forecast CAGR of 5.0% as awareness and regulatory clarity improve for litigation finance.
• Singapore accounted for roughly USD 28.0 million in 2024, capturing 2.9% share and projected CAGR of 4.2% fueled by arbitration and Asia-Pacific regional dispute work.
• South Korea contributed around USD 28.0 million in 2024, with a similar 2.9% share and expected CAGR of 4.0% supported by corporate litigation activity.

Middle East and Africa

The Middle East and Africa market is developing as regional legal infrastructure improves and international commercial activity increases; Gulf Cooperation Council countries and select African financial centers are becoming hubs for arbitration funding and litigation support services.

The Middle East and Africa region accounted for approximately USD 96.9 million in 2024, equating to about 10.1% of global market share and anticipated to expand at a CAGR of 3.6% through 2033 as regional adoption accelerates.

Middle East and Africa - Major Dominant Countries in the Litigation Funding and Expenses Market Market

• United Arab Emirates reported around USD 30.0 million in 2024, holding 3.1% global share and forecast CAGR of 3.9% driven by arbitration and regional commercial dispute financing.
• Saudi Arabia recorded approximately USD 20.0 million in 2024, with a 2.1% share and expected CAGR of 3.7% as legal services and dispute resolution markets expand.
• South Africa posted near USD 18.0 million in 2024, representing 1.9% share and projected CAGR of 3.5% supported by local commercial litigation demand.
• Egypt accounted for roughly USD 16.0 million in 2024, with a 1.7% share and expected CAGR of 3.4% as legal reforms and enforcement improve.
• Nigeria reached about USD 13.0 million in 2024, capturing 1.4% share and forecast CAGR of 3.3% as corporate dispute resolution activity rises.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

The key players of the Litigation Funding And Expenses Market are driving growth and innovation with technology, widening their geographical scope, and coming up with bespoke funding solutions tailored to meet the needs of different clients. These efforts transform the market's landscape, enhancing accessibility, efficiency, and transparency.

"Technology and Innovation"

Litigation funders at the helm are investing hugely in technology in order to improve case assessment, risk management, and decision-making. For example, Harbour Litigation Funding and Therium Capital Management have developed AI-based platforms to better and more efficiently assess the merits of potential cases. The predictive analytics and machine learning algorithms applied help predict case outcomes, which is a good data-driven decision-making tool for funders. Another aspect is the use of blockchain technology by some firms to make fund management more transparent and provide secure, immutable records of financial transactions.

Geographical Expansion

The global leaders are diversifying their jurisdictions in the developing world, but predominantly in Asia. Singapore, Hong Kong, and India are starting to embrace litigation finance as a mode of funding cases. Burford Capital has secured its foothold in Singapore, focusing on the developed arbitration infrastructure across the border dispute settlements. On similar lines, Omni Bridgeway is expanding into China and the Middle East and feels that such geographies have the future potential of offering a platform to litigation financing services. This also means that companies are expanding their market share as they enter new jurisdictions and creating acceptance of litigation funding globally.

Customized Funding Solutions

Litigation funders have started to come up with unique funding models as they try to accommodate the increasingly complex nature of legal disputes for various client needs. Portfolio funding, wherein multiple cases are financed under one agreement, is becoming increasingly popular because it permits law firms and corporations to manage risk diversification while ensuring steady financial flow. Additionally, funders are joining forces with law firms to devise hybrid models by integrating the hourly billing system of the traditional lawyer with contingency-based agreements. In this regard, litigation funding will be more appealing to a more diverse clientele from a claimant in a small city to a multination corporation.

Partnerships and Collaborations

Strategic alliances are increasingly becoming a market-shaping force. Therium Capital Management recently allied with leading European law firms to offer bespoke funding solutions for complex cross-border disputes. This allows funders to tap into the expertise and networks of law firms, ensuring that funded cases are well-prepared and have a higher likelihood of success.

Focus on ESG Cases

More and more litigation funders are now lining up their strategies with ESG principles. These include cases related to sustainability, human rights, and corporate accountability. This shift not only enhances their reputation but also attracts socially conscious investors who are increasingly seeking ethical investment opportunities.

Institutional Investment

The entry of institutional investors, including private equity firms and hedge funds, is significantly boosting the market. Institutional investors provide large-scale funding that enables key players to undertake high-value cases and expand their portfolios. For instance, Omni Bridgeway launched a $1 billion fund in 2023, reflecting the growing institutional interest in litigation finance as a high-return investment avenue.These strategies through which the top players of this industry are propelling the Litigation Funding And Expenses Market but simultaneously establishing it as a vital access enabler for justice and legal innovation all over the world.

List Of Top Litigation Funding And Expenses Companies

• Burford Capital (USA)
• Harbour Litigation Funding (UK)
• Bentham IMF (Australia)
• Therium Capital Management (UK)
• Juridica Investments (USA)
• Augusta Ventures (UK)
• Omni Bridgeway (Australia)
• Validity Finance (USA)
• LexShares (USA)
• Deminor (Belgium)

KEY INDUSTRY DEVELOPMENTS

January 2024: Harbour Litigation Funding launched a next-generation AI-driven platform that enhances case evaluation process efficiency and decision making. It represents the increased uptake of technology within the litigation funding sector.December 2023: Therium Capital Management entered a strategic partnership with one of the major European law firms to design specific funding products tailored for complex cross-border disputes that are being filed before the European courts.

REPORT COVERAGE

The study takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth. Robust growth is occurring in the market for litigation funding and expenses because of the surging demand for financial solutions to legal disputes, as well as rising global acceptance of third-party funding. At the same time, the market offers significant opportunities, especially in emerging regions like Asia, with challenges related to regulatory inconsistencies and ethical concerns. The future of the market is expected to be shaped by the integration of advanced technologies and innovative funding models, thereby enhancing transparency and efficiency.